How To Do Just About Everything
How To Do Just About Everything
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So after weeks, months or (God forbid) years of toiling, you've finally come to the realization that you deserve a raise. Maybe you need the money to move out of your parents' basement before you turn 30. Or maybe you need to purchase a new kidney to compensate for your collegiate drinking. Or maybe you just want some recognition after saving the company's bacon time and time again. We don't care about your motivation; we just want to help you get a raise.
Chances are, your boss hasn't voluntarily showered you with six-figure bonuses or even offered you more than the annual cost-of-living raise. So it's up to you to make the first move. And no matter how good you are at hard-nosed negotiating, when it comes to asking for a raise, doing it right is definitely an art.
Before you can ask for a raise, you naturally have to have the goods. "Having the goods" means that you deserve your raise and you know it.
Be confident
Before you do anything else, you must overcome any reluctance you may have about asking for a raise. Employees sometimes just accept the measly 2 percent increase at their annual review because they are too afraid to stand up for themselves. You shouldn't be. If you know you deserve a raise, go after it. The worst thing that can happen is that your boss will say no. (Read on for strategies to foil that answer.)
Make a list of what you've done
There is a problem with being overly confident. Just because you think you're hot stuff does not mean that your coworkers agree--let alone your supervisor. Unless you are married to the big cheese, do not assume that your mere presence at work every day or your ability to make chit-chat at the water cooler will guarantee the green paper. Before you demand a pay raise that will catapult you into Bill Gates' tax bracket, make sure you can back your bravado with cold, hard facts. Make a mental account of your achievements in recent months. Write them down. Read them and think about what you did to create positive change, improve your employer's bottom line, manage unruly employees or avert disaster. If you can't think of any good examples, you probably shouldn't make a fool of yourself by requesting a raise. But if you have some major wins, you should focus on quantifying them as if you were writing a resume.
* If you're a sales representative, list the dollar figures you generated this year compared to last year. If you're a manager of a department, show exactly what percentage you saved the company by cutting costs and spurring your employees to better performance.
* If you're an architect, demonstrate how you took the lead in a project design and worked to deliver it on time, despite seemingly insurmountable odds.
* If you're a journalist, specify the stories you wrote that uncovered long-standing corruption, or those that generated the most response from readers.
* If you're a goat shaver, detail how many goats you have shaved in recent months, how many more goat sweaters were made because of your contribution, and how you have assumed a leadership role among the other goat shavers.
Regardless of your profession, you can always show how you contributed in a way that went beyond the call of duty. Just remember that bosses like to see results. Be specific and detailed so he can't argue your achievements. The more vague you are, the less likely it is that the boss will get excited about your involvement. Show that your special talent made it happen.
Run your list by someone
The third step is to run your list by a trusted colleague in the same field, but not someone who currently works with you. (Comparing salaries with co-workers is a major no-no that we will get to later on.) A spouse or family member could also help. The point is to bounce your achievements off someone else who knows you well and can help you put your tasks into perspective. She may also bring up some accomplishments you hadn't thought of. Once you have a list to work with, your next step is to figure out a successful strategy for delivery. Having the goods only gets you part of the way; timing and delivery will either seal the deal or send you back to your cubicle without passing "Go."
Devising a strategy is all about research and preparation. You should know what the salary standard is for your industry, what objections the boss might raise, and how to deliver your spiel without backing down too soon.
Know the standards for your industry
It is ill-advised to suggest/demand a raise without knowing the salary range for your position and your level of experience, because the boss will shut you down with explanations like "engineers don't get paid $100,000 a year unless they have 3 years' experience." You won't be able to refute what sounds like a water-tight justification unless you know the going rate for someone with that many years under his belt.
Getting a raise requires knowing where you stand in your industry. The first way to combat your ignorance is to establish how much you should be getting paid. This can be done by calling professional associations (which often do national surveys on salaries), quizzing your other friends in the industry at other companies, asking your career counseling service (if you're still in or just out of college) and going online. The Internet is a great place to find such information. Some sites list salary surveys for free, while others command a price. The latter tend to be more detailed and specific to certain cities or geographic regions that you are interested in, thus offering you better information.
The general salary surveys are helpful if you need a ballpark idea of what to expect in your field, but they may not have specifics, such as your degree of responsibility or experience. Being an accountant at one firm may not mean the same duties (and hence moolah) as being an accountant at a larger company. Location, demand and ability all play into your paycheck. But here are some free sites to get you started:
* JobStar: This is run by a public library in California, and will give you salary surveys in 50 fields, from accounting to wood & paper (whatever that means), with a concentration on salaries in California. It also offers handy links to over 300 online salary surveys through various sites, some of which are listed below.
* Bureau of Labor Statistics: The BLS has recent salary updates.
* The Wall Street Journal: This fun little read also has surveys on numerous careers.
There are many other salary survey sites on the Internet. Try a search engine like Yahoo! and search for "salary survey." To get more specific, try the name of your field plus "salary survey." Most of the sites command a fee that can vary widely in terms of cost. It's up to you to decide how detailed a study you want and how much money you are willing to pay.
Another way to figure out your worth is to check the classifieds. Just look at the salaries offered for jobs similar to yours to get an idea, but remember that the employers could be lowballing or highballing the salary depending on the current demand for such professions.
Finally, try your human resources department. They may release pay ranges for job titles, especially if it is a large company. You may want to feel out co-workers on the topic--but be very, very careful. If you work for a company where everyone knows what everyone else makes, you have something to go on. But other companies and people like to keep that information top secret. In fact, sharing it can be a punishable offense at some firms.
Whether you know what others make, you should never, ever reveal this during the talk with the boss. It can kill your chance for a raise before you've even begun. (See step 5 for more details.)
Figure out exactly what you want
You also must consider what other options exist besides a one-time raise. This will help you when bargaining time comes. Compensation is not just limited to money: Perks can be great, too. You might want to think about more vacation time, tuition, stock options, a one-time bonus, getting a company-paid cell phone or laptop computer, child care or more flexible work hours. Do not get so focused on the raise that you can't see other ways of being rewarded.
You also should know what your company's raise policy is. Are raises merit-based? Are they fixed cost-of-living raises that everyone gets? Is there a percentage range depending on performance? That way, you can have a more productive discussion once the issue is on the table.
Once you know your worth, you are just beginning the fun of figuring out what to ask for (and how to spend your raise once you've scored it).
Again, common sense reigns. If your salary is in the middle of the range, you can aim for the higher paycheck. If you are already at the top of your scale, start thinking about what other responsibilities you could ask for to increase your earning power, or if it is time for a new position entirely. Prepare several raise packages that would make you happy. Make "Plan A" the biggest raise you hope for and "Plan D" something you can live with that is better than the usual cost-of-living raise.
Predict your boss's objections
If the boss says the company does not have money in the budget at the present time, ask when you might see the raise you hoped for. Better yet, if you have saved your company major money or generated piles of cash through your superior salesmanship and management skills, devise a way to share in the profits you brought in. Sometimes, bosses need to be shown that a raise can be paid for out of the revenue you have created.
If the boss disagrees about your worth, you may have to bring up your least desirable "Plan D" option as a last stand. Or you can ask for feedback on what you need to do to get the raise you want and get a schedule of goals in writing so you both can remember what you agreed on. If the boss offers a completely different compensation package than you had thought of--and it might be a better one--ask to be allowed to sleep on it before agreeing. If it's unfamiliar to you, the plan may have a drawback you haven't noticed.
If the boss delivers an outright "No, plebe!" for an answer, you don't have to take it lying down. Naturally, this is not the answer you want to hear, but there are ways of dealing with it. Try your spectrum of compensation options, ask for feedback and finally convey your sense of dismay about the answer. You can always tell your boss you would like to take this discussion to the next level and target someone higher on the chain of command who might agree with you and overrule your immediate supervisor. But be prepared to raise some hackles if you take this approach, because it is essential you do it openly and not behind your boss' back. Your boss will eventually find out anyway.
But getting no for an answer may also be your wake-up call that there is no room for growth at that company, and that it is time to move on.
One suggestion career counselors have is to role-play these potential scenarios with a friend. Creating and practicing your script will prepare you well for the real thing.
Timing is an essential part of playing the getting-a-raise game. Often, employees face the dilemma of whether they should wait for their annual performance review or straight-out ask for a raise right now.
There are several conditions to consider when weighing your options. One is how far off the annual review is. If it is several months away, you might want to strike when you have recently had a stunning success. That way, your achievement won't lose its luster, and the boss can't claim amnesia when you bring it up a year from now. If you decide to have the raise discussion when your boss is not expecting it, or if your company does not have regularly scheduled formal reviews, let her know you want to set aside time to sit down and talk about your performance and compensation. Depending on your boss's style, you can make the request in person or send a memo or email. The point is to avoid catching your boss by surprise (it usually results in defensiveness).
Another opportune time to ask is when you have been handed more responsibility in your job, or a new position entirely. While it would seem that more money is a natural consequence, you sometimes have to bring it up yourself. Yet another time to request a raise is when you notice that your job responsibilities have gradually morphed into a beast of burden but your paycheck has somehow been left behind. Don't let the company get away with anything less than full reimbursement.
On the other hand, if your review is coming up, it could be the perfect moment, since you and your boss will be on the topic anyway. Furthermore, you will have some time to get some good deeds under your belt and build your case. Ask for more work that you know you can get done, don't be afraid to work past 5 p.m., and let yourself be seen eating lunch at your desk. In general, the ideal time to talk money is immediately after you have demonstrated your worth to the company.
If the company is public, you can obtain the latest financial information from its office of investor relations or look it up online. One easy method is to go to Finance.yahoo.com and click on "symbol lookup." Punch in the company name, and its daily stock price will show up, along with links to its news and financial history. If your company is private, you will not able to get such financial data, but you should use some common sense. If it recently laid off employees, that's a good sign the bottom line is suffering and that you might have trouble squeezing the money out of them.
It is also essential to be sensitive to external pressures, like the overall economy and how your company is doing financially. If the economy is in a major recession or your company is struggling to stay in the black, it is clearly not an appropriate time to demand a raise, no matter how darn good you are. Bide your time, and hopefully the company will recognize your efforts later.
Knowing your boss's personality and business style is also helpful in tailoring your delivery accurately. If your boss is a swift decision-maker, do not serve up idle chatter; rather, get to the point and give your alternatives so she can make the decision. On the other hand, if you have a boss who makes decisions slowly and likes to socialize, then go with the flow. Be (gently) firm, leave him with your thoughts and schedule a follow-up session.
Only you know your boss best, and while some bosses are totally inscrutable, try to pick a style you think will work well with her personality and modus operandi. Picking a time when your boss is in a good mood never hurts, regardless of what he is like. Science has proven that happy bosses give raises more often than grumpy bosses. (The jury is still out on Sleepy, Dopey, Sneezy and Bashful bosses.)
Here is a list of guidelines of what to avoid when requesting a raise:
Don't say why you need the money. Don't say that you need some dough to buy a new house, to pay off college loans, to pay your bookie or to fund a trip to Europe. Your boss will think you are whining. And who couldn't use more money? In all likelihood, your company does not care about your needs, but it does care about your worth. Show that you have earned the raise.
Don't be unreasonable, immature or unprofessional. Your boss will probably shut you down immediately. Unlike when you're pulled over for a traffic ticket, tears do not help. Instead, approach the discussion like a partnership, with both sides trying to reach a happy compromise.
Don't demand to be paid as much as Susie Q who sits next to you. Your boss will think you are incredibly nosy and be less likely to trust you with confidential and important information in the future. That ploy upsets employers like nothing else. Your boss will not want to explain why Susie Q makes more (possibly for having skills, experience or education that you lack, even though you are doing the same job).
Don't act entitled to a raise. Your boss will be on the defensive and less inclined to work with you to make you happy.
Don't threaten to leave if you don't really want to. Bluffing is for poker, so if you threaten to leave, be prepared to back it up. Chances are, the boss will tell you to follow your dreams elsewhere anyway. And even if the company makes you a counteroffer, you have showed your hand and the boss knows you are on the job hunt, resulting in your getting all of the projects no one else wants to do. At worst, the company knows you have no loyalty, and you could be the first to go once budget cuts hit your department.
Now that your research is done, you should feel capable of handling any outcome with competence and grace. Here are some general tips:
* Dress nice, take a shower, brush your teeth and don't look like a slob.
* Be prepared when the conversation doesn't follow your script. If you have prepared well, you will have the answer to any objection on the tip of your tongue. If you can steer the conversation, start by explaining why you feel you deserve a raise.
* Bring a copy of your accomplishments to hand to your boss. Emphasize without over-elaborating--boring the boss is not in your best interest, either.
* Let your boss first bring up what the company has to offer; that way, if it exceeds your expectations, you have not shot yourself in the foot by going first. But you can bring up the compensation issue by noting how much others in the field are paid. Again, do not compare yourself to co-workers, just the field in general.
* When it comes to negotiating, ask for more than you really want, but don't ask for ridiculous amounts: Security will remove you from the premises. Ask for a couple percent more of an increase than you are really expecting, and see what happens.
This is when your role-playing comes in handy and you can counter every reason for why the company shouldn't or can't oblige you. If luck is with you, your boss will be so impressed by your linguistic ability that he will crack like an egg and fork over the cash. Even if the answer is still no, think of this as the beginning of a conversation, and schedule a time to revisit the topic once you have met some more milestones.
Above all, remain confident without being cocky. And don't forget: If your current company won't see the light, you are always free to take your talents elsewhere.
(One final note: Resources.monster.com/tools has a Career Resource Center where you can take a quiz to see if you deserve a raise. Be prepared to answer questions like "If you left the company, how easy or hard would it be to replace you?")